Hubilu Venture Corporation reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which specializes in real estate consulting and asset management, particularly in student housing near Los Angeles, experienced notable changes in revenue, profitability, and strategic acquisitions compared to the previous fiscal period.

For the three months ended September 30, 2024, rental revenue increased to $616,393, up 30% from $473,105 in the same period of 2023. Net operating income also rose to $383,068, reflecting a 23% increase from $311,212. However, net income for the three months saw a modest rise to $66,522, compared to $62,040 in the prior year, indicating a 7% increase.

In contrast, the nine-month results showed a decline in net income, which fell to $3,785 from $59,952 in the same period of 2023, a decrease of 94%. This decline was attributed to a substantial increase in total operating expenses, which rose to $756,548 from $514,851, driven by higher general and administrative costs and professional fees.

The company’s total assets grew to $20,735,848 as of September 30, 2024, up from $16,835,820 at the end of 2023. This increase was primarily due to the acquisition of real estate properties, with total real estate net value rising to $20,584,228 from $16,793,056. The company made several property acquisitions during the nine months, totaling $3,439,000, financed through debt arrangements.

Current liabilities also increased significantly to $3,228,567 from $1,793,854, contributing to a working capital deficit of $3,167,357. The accumulated deficit slightly decreased to $2,117,118 from $2,120,903, indicating ongoing financial challenges.

Cash on hand improved to $58,437 from $24,564, and net cash provided by operating activities increased by 6% to $354,703. However, net cash used in investing activities surged to $1,203,313, a 266% increase from the previous year, reflecting the company’s aggressive acquisition strategy.

The company continues to face uncertainties regarding its ability to sustain operations without raising additional capital, as it has incurred net losses since inception. The financial statements are prepared in accordance with U.S. GAAP and SEC rules, and the company has provided a full valuation allowance against its net deferred tax assets due to realizability concerns.